AU Morning Wrap: ASX opens 0.4% lower; lithium stocks extend decline

Moomoo News AU wrote a column · Nov 28, 2022 07:35

G'day, mooers! Check out the latest news on today's stock market!
• US markets mixed
• ASX 200 drops 0.39 per cent, weighed down by losses across the resources sector
• Stocks to watch: Bank of Queensland, Healius, Pilbara Minerals

- Moomoo News AU

AU Morning Wrap: ASX opens 0.4% lower; lithium stocks extend decline

Wall Street Summary
The $Dow Jones Industrial Average (.DJI.US)$ closed at a seven-month high as a positive week for the major stock benchmarks ended at lunchtime. The blue-chip average climbed 153 points or 0.45 per cent to its strongest finish since April 21.

The $S&P 500 Index (.SPX.US)$ dipped a point or 0.03 per cent. The $Nasdaq Composite Index (.IXIC.US)$ fell 59 points or 0.52 per cent.

An early finish meant volume on the major exchanges was roughly two-fifths of the average across the previous 20 trading days.

AU Market Watch
The $S&P/ASX 200 (.XJO.AU)$ has dropped 0.39 per cent in the opening minutes of trade, weighed down by losses across the resources sector.

Bank of Queensland fell 7 per cent to $7.03 after announcing that chief executive George Frazis will leave the bank effective today.

Healius dropped 5 per cent to $3.20 after reporting that lower COVID-19 testing volumes have weighed on revenue.

Lithium stocks extended their decline amid demand concerns in China; Liontown Resources dropped 5.5 per cent to $1.89, Core Lithium fell 3.4 per cent to $1.29, Mineral Resources tumbled 2.9 per cent to $79.97 and Lake Resources declined 2.5 per cent to 96¢.

Stocks to Watch:

$Pilbara Minerals Ltd (PLS.AU)$: Pilbara Minerals and Calix have entered into a joint venture agreement for the development of a demonstration plant at the Pilgangoora project.

The companies will aim to produce lithium salts via a refining process utilising Calix's patented calcination technology, as well as for the potential commercialisation of the process.

$Resolute Mining Ltd (RSG.AU)$: Resolute Mining has received payment of the third and final tranche of $10 million for the sale of the Bibiani gold mine in Ghana to Asante Gold Corporation.

$Healius Ltd (HLS.AU)$: Healius says it is adjusting its cost base to address reduced demand for COVID-19 testing.

Total revenue for the 2023 financial year to-date was $617.5 million, down 31.6 per cent from the prior corresponding period. EBITDA was down 64.2 per cent to $124.3 million.

Revenue from COVID-19 testing was down 85.4 per cent to $54 million.

$BWX Ltd (BWX.AU)$: BWX has further delayed the release of its FY22 audited financial statements after it engaged strategic advisors to assist with procuring additional debt funding.

The company said it would take time to evaluate the offers received for the funding.

$Bank of Queensland Ltd (BOQ.AU)$: Bank of Queensland has announced that chief executive George Frazis is leaving the bank, effective today.

The bank said it was commencing a domestic and international executive search for a replacement.

Ex-dividend: None

Dividends Paid: None

Commodities
• Iron ore futures rose 0.5% to US$93.05 a tonne.

• Oil prices closed at their lowest level since 12 January weighed by ongoing discussions about a price cap on Russian crude.

• Gold closed the session flat as bond yields and the US dollar faded from session highs (but still positive).

Source: Dow Jones Newswires, AFR

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